Taypayer forfeits £846,000 overpaid tax

The taxman has just received a gift of over £800,000.

The Fisherman sympathises with poor Angus Monro, a businessman who overpaid his tax by £846,000. His accountants made a mistake, and he paid more than he should have done.

There is a time limit of one year in which to correct such mistakes. The mistake was realised late. Mr Monro tried to claim back the overpaid tax outside the one year period, but the court said no.

The court refused to order repayment because the tax was paid in accordance with the prevailing practice at the time. That practice was subsequently found to be wrong. In addition, the court refused to allow the remedy of restitution, which usually applies in cases of mistake.

The taxman agrees that Mr Monro overpaid, but no way are they parting with the unexpected gift.

The Fisherman sends best wishes to Mr Monro. Stop by the wharf for a drink sometime.